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UAE Labour Law for Employers

Probation, overtime, leave, deductions, notice and gratuity: the numbers UAE employers need, taken from the labour law itself, plus the points where companies most often get them wrong.

Page last updated: . Requirements, government fees and processing times are set by the relevant UAE authority and can change.

PROXPAT is an independent private consultancy and is not affiliated with or endorsed by any UAE government authority. All approvals, government fees and processing times are determined by the relevant UAE authority and are subject to change. For official requirements and fees, see Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, published by MOHRE.

UAE labour law compliance guide for employers by PROXPAT

UAE Labour Law Guide for Employers

Most employment disputes in the UAE are not about bad intentions. They come from a contract that says one thing, a payroll that does another, and a final settlement calculated on the wrong salary. The rules for private sector employment are set by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships and its Implementing Regulation, administered by the Ministry of Human Resources and Emiratisation (MOHRE).

This guide sets out the figures employers actually use, as stated in the decree-law published by MOHRE, with article references so your HR team can check the source. It applies to mainland private sector employers; some free zones and financial free zones apply their own employment regulations.

PROXPAT handles the government side of employment through our PRO services: work permits, contracts, employment visas and cancellations. This page is general guidance, not legal advice; take legal advice on disputes or unusual contracts.

Employment Contracts (Article 8)

  • The contract is made in two copies, one kept by the employer and one handed to the worker, using the forms set by the Implementing Regulation.
  • Contracts are concluded for a specified period and can be renewed by agreement; an extension or renewal is treated as a continuation of the original term.
  • The worker can prove the contract, wage and entitlements by any means of proof, which is why informal side arrangements rarely protect an employer.

For mainland employers the contract is issued alongside the MOHRE work permit, so the job title and salary on both should match.

Probation (Article 9)

RuleWhat the law says
Maximum length6 months from the start of work
How oftenOnly once with the same employer; if passed, probation counts towards service
Employer ends employmentAt least 14 days' written notice
Worker moves to another UAE employerAt least one month's written notice; the new employer compensates the original employer for recruitment costs unless otherwise agreed
Foreign worker leaves the UAEAt least 14 days' written notice; if they return with a new work permit within 3 months, the new employer pays that compensation unless otherwise agreed
Notice not respectedThe party in breach pays the worker's wage for the notice period or its remainder

During probation there is no paid sick leave (Article 31), and annual leave can only be taken early if the employer agrees (Article 29).

Working Hours, Overtime and Weekends (Articles 17 to 21)

TopicRule
Normal hoursMaximum 8 hours a day or 48 hours a week
Overtime limitNo more than 2 hours a day, and total working hours may not exceed 144 hours every 3 weeks, except as the Implementing Regulation allows
Overtime payBasic wage for the hours plus at least 25%
Overtime between 10 pm and 4 amBasic wage plus at least 50% (shift workers excluded)
Working on the weekendAnother day off, or the day's wage plus at least 50% of the basic wage
Consecutive weekendsNo more than two consecutive weekend days worked, except day workers
Weekly restA paid weekend of at least one day
CommuteNot counted as working time, except for certain categories

Overtime is calculated on the basic wage. Contracts that pack most of the salary into allowances reduce overtime cost, but they also reduce what the employee sees as fair, and that gap is where many complaints start.

Leave Entitlements (Articles 29 to 32)

LeaveEntitlement
Annual leaveAt least 30 days for each year of service, with full wage
Annual leave, 6 to 12 months of service2 days for each month
Final part-yearLeave for the part of the last year worked if service ends before the balance is used
Part-time workersIn proportion to actual working hours, as defined in the contract
Sick leave (after probation)Up to 90 days a year: first 15 days full pay, next 30 days half pay, remainder unpaid
Maternity leave60 days: 45 days full pay and 15 days half pay, plus up to 45 further unpaid days where illness from pregnancy or childbirth prevents return
Child needing constant care30 days full pay after maternity leave, extendable by 30 days unpaid
Parental leave5 working days for either parent, within 6 months of the birth
Bereavement5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent
Study leave10 working days a year for exams, after at least 2 years of service
  • The employer can set annual leave dates around work needs, but must tell the worker at least one month in advance.
  • Sick workers must notify the employer within 3 working days and provide a medical report.
  • Sick leave is unpaid where the illness results from the worker's own misconduct, as defined in the Implementing Regulation.

Wage Deductions: The Limits (Article 25)

No amount may be deducted or withheld from wages except in the cases the law lists. The caps matter as much as the reasons:

Reason for deductionLimit
Recovering an overpayment to the workerUp to 20% of the wage
Penalties under the establishment's approved penalty regulationUp to 5% of the wage
Damage caused by the worker's mistake or breach of instructionsUp to 5 days' wage per month, unless a court approves more
Debts under a court judgmentUp to a quarter of the wage, except awarded alimony
Loan repayments to the workerWith written consent, without interest, within the monthly limit
Statutory contributions, savings fund, approved social schemesAs the relevant rules and written consent allow
All deductions combinedNot more than 50% of the wage

Ending Employment: Notice and Final Settlement (Articles 43 and 53)

RuleWhat the law says
Notice periodAs agreed in the contract, not less than 30 days and not more than 90 days
During noticeThe contract continues; the worker receives the full last wage and works if the employer requests
Waiving or shortening noticePossible by agreement, preserving the worker's rights for the agreed notice; the period must be the same for both parties unless it benefits the worker
Notice not givenNotice period allowance equal to the wage for the full notice period or its remainder
Final paymentWages and all other entitlements within 14 days of the contract's end

Ending the contract also means closing the government side properly: the work permit and the residence visa. Leaving either open is the most common reason a former employee's next permit is refused. See visa cancellation and our guide can I cancel my employment visa after 2 months.

End of Service Gratuity (Article 51)

  • A full-time foreign worker who completes at least one year of continuous service is entitled to gratuity.
  • It is calculated on the last basic wage: 21 days' wage for each of the first five years, and 30 days' wage for each year after that.
  • Parts of a year count in proportion, once one year of continuous service is complete.
  • Unpaid days of absence are not counted as service.
  • Total gratuity may not exceed two years' wage.
  • UAE national workers receive end of service benefits under the pensions and social security legislation instead.

How many days of basic wage: worked examples

Continuous serviceCalculationDays of basic wage
11 monthsLess than one yearNo gratuity
3 years3 × 2163 days
3 years 6 months3.5 × 2173.5 days
5 years5 × 21105 days
7 years(5 × 21) + (2 × 30)165 days
10 years(5 × 21) + (5 × 30)255 days

Please note: the examples show days of basic wage only. Convert to an amount using the daily basic wage method your payroll and contract apply, deduct only what the law or a judgment allows, and check the two-year cap for long service.

Paying Wages Through the Wage Protection System (WPS)

MOHRE requires private-sector establishments to pay wages through the Wage Protection System, an electronic system that transfers wages through approved banks, financial institutions and exchange houses. Ministerial Resolution No. 340 of 2026, in force from 1 June 2026, sets the first day of each Gregorian month as the unified due date for the previous month's wages, and treats any payment after that date as a delay.

TopicWhat the resolution says
Legal basisMinisterial Resolution No. 340 of 2026, in force 1 June 2026, replacing the 2022 resolution
Due dateThe first day of each Gregorian month, for the preceding month's wages
When an establishment is compliantIt transfers no less than 85% of the total wages due by the due date
When a worker counts as paidThey receive no less than 85% of their entitled wage and the difference is a lawful deduction under Article 25 of this Decree-Law
First real consequenceNew work permits are suspended on the fifth day after the due date
Domestic workersWPS is mandatory for specific domestic worker jobs and optional for the rest of that category

Enforcement escalates on a fixed timetable, from monitoring and alerts through fines and reclassification to precautionary attachment and a travel ban on the person in charge. The full day-by-day ladder, the fine amounts, the eleven exclusions and the rules on delegating payroll are in our UAE Wage Protection System guide.

Emiratisation Targets for Private Companies

Company sizeTarget
50 or more employees2% annual growth in Emirati employees in skilled positions, towards a 10% Emiratisation rate by the end of 2026
20 to 49 employees in specified economic sectorsRecruit at least one UAE national and retain those already employed
  • Financial contributions for missed targets. MOHRE set the contribution for 2022 at AED 6,000 a month (AED 72,000 a year) for each Emirati not appointed, increasing by AED 1,000 each year until 2026.
  • Deadlines. MOHRE asked companies to meet 2025 targets before 31 December 2025, with contributions imposed from 1 January 2026 on those that did not.
  • Enforcement. MOHRE monitors compliance annually and uses AI tools to flag fake Emiratisation. Violations can lead to legal action and a downgraded establishment classification.
  • Incentives. Companies in the Emiratisation Partners Club can receive up to 80% discounts on MOHRE service fees and priority in government procurement.
  • Hiring channel. MOHRE directs companies to the Nafis platform to connect with Emirati job seekers.

Because MOHRE classification also affects work permit fees, Emiratisation compliance has a direct cost effect beyond the contributions themselves.

Employer Obligations Checklist (Article 13)

Keep each worker's file for at least two years after their service ends

Never withhold a worker's official documents, or force them to leave the UAE when employment ends

Provide written work rules: instructions, penalties, promotions and rewards

Provide licensed accommodation, or an accommodation allowance in cash or within the wage

Invest in minimum training and skills development

Provide protection against occupational injuries and diseases

Alongside these, keep the government file current: valid establishment card, work permits that match actual roles, and cancellations filed when people leave.

Where PROXPAT Fits

Work permit issuance, renewal and amendment

Contract preparation aligned with the permit

Employment visa, medical and Emirates ID

Role and salary changes reflected on the permit

Labour and immigration cancellation

Establishment card and quota management

Monthly PRO retainer for regular hiring

Coordination with your legal adviser on disputes

Frequently Asked Questions

For full-time foreign workers with at least one year of continuous service, gratuity is 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after, calculated on the last basic wage, with parts of a year counted proportionally and a total cap of two years' wage.

At least 30 days for each year of service with full wage, and 2 days per month for service of more than six months but less than a year.

Six months, and only once with the same employer. The employer must give at least 14 days' written notice to end employment during probation.

The period agreed in the contract, which must be at least 30 days and no more than 90 days. The party that does not give notice pays the wage for the notice period or its remainder.

At the basic wage plus at least 25%, or plus at least 50% for overtime between 10 pm and 4 am, except for shift workers. Overtime is limited to 2 hours a day and 144 total working hours every 3 weeks.

After probation, up to 90 days a year: the first 15 days on full pay, the next 30 days on half pay and the remainder unpaid. There is no paid sick leave during probation.

60 days: 45 days on full pay and 15 days on half pay, with further unpaid leave available in the circumstances the law sets out.

Within 14 days from the end date of the contract, including wages and all other entitlements.

Under Ministerial Resolution No. 340 of 2026, an establishment is compliant if it transfers no less than 85% of the total wages due by the due date, which is the first day of each Gregorian month for the preceding month's wages.

Private-sector companies with 50 or more employees must achieve 2% annual growth in Emiratis in skilled roles, and companies with 20 to 49 employees in specified sectors must hire and retain at least one UAE national.

No. The law requires employers not to withhold a worker's official documents.

Keep Your Employment Paperwork Compliant

PROXPAT manages work permits, contracts, visas and cancellations for UAE employers so the government side always matches your payroll and HR decisions.